In specialty chemicals, the first impact of an energy shock is not always a direct shortage. More often, it begins as uncertainty: which feedstocks will be re-priced, which intermediates will tighten, which packaging materials will become harder to source, and which freight lanes will lose reliability. By the time the issue reaches a finished chemical product, the original disruption may already have moved through several layers of refining, petrochemical production, conversion, packaging, and logistics.
That is why, the question customers should ask is not simply where a product is blended or warehoused. The more important question is what upstream systems must function for that product to be made, packaged, shipped, and replenished consistently. In specialty chemicals, local supply can reduce some risk, but it does not fully insulate the market from global petrochemical disruption.
The issue is larger than fuel pricing
When energy markets are disrupted, most people notice the impact first at the gas station. Fuel prices move quickly, and the connection is easy to see.
The less visible impact is upstream and downstream through the chemical supply chain. The same oil and gas systems that supply fuel also support the production of petrochemicals, plastics, solvents, resins, packaging materials, fertilizers, and industrial raw materials. A disruption in one part of that system can therefore move into many other markets before it shows up in a customer’s delivered product.
That is why disruption tied to the Middle East and the Strait of Hormuz should not be viewed only as a fuel issue. It is also a petrochemical issue, a packaging issue, a freight issue, and ultimately a finished-product supply issue.
Oil and gas are chemical feedstocks, not just energy sources
Oil and natural gas do not stop at gasoline, diesel, or heat. They are also converted into petrochemicals, which become the building blocks for a wide range of industrial materials.
Those materials include plastics, solvents, surfactants, glycols, amines, resins, fibres, packaging materials, fertilizers, and many of the inputs used in specialty chemical formulations.
The connection matters because a supply shock in oil and gas markets does not remain isolated at the refinery or the fuel terminal. Changes in crude flows, natural-gas liquids, condensate, naphtha, or petrochemical output can affect both the price and availability of materials that later appear in finished chemical products and packaging.
How the chain works
The supply chain is more connected than it may appear:
1. Oil and natural gas are produced and transported to refining and petrochemical systems.
2. Those systems produce petrochemical building blocks.
3. Those building blocks are converted into raw materials such as solvents, surfactants, glycols, amines, resins, and packaging plastics.
4. Those raw materials are then blended, reacted, diluted, or packaged into finished chemical products.
5. Finished products still require containers, labels, freight, warehousing, and delivery before they reach customers.
For customers, the important question is not only where the finished product is manufactured. The more useful question is what must happen upstream for that product to exist, be packaged, and be delivered reliably.
A product may be blended locally while still depending on imported intermediates, global polymer pricing, overseas petrochemical production, or freight networks affected by energy-market disruption.
Why the Strait of Hormuz matters
The Strait of Hormuz is not only a route for crude oil. It is part of the wider system that supports global petrochemical production.
The scale is significant. About 20 million barrels per day moved through the Strait of Hormuz in 2024, equal to roughly 20% of global petroleum liquids consumption and more than one-quarter of global seaborne oil trade. Around one-fifth of global liquefied natural gas trade also moved through the Strait. Most of that flow went to Asian markets: 84% of crude oil and condensate, and 83% of LNG.[1]
That Asian exposure matters because Asia is a major center of petrochemical processing. Feedstocks moving from the Gulf into Asian refineries and crackers can later re-enter global markets as polymers, intermediates, solvents, and specialty inputs.
The Gulf region is also a major petrochemical supplier in its own right. The Gulf Cooperation Council chemical industry represents about 6% of global petrochemical production capacity and exports roughly three-quarters of its output.[2] In 2022, GCC chemical exports reached 82.4 million tonnes, including 41.5 million tonnes to Asia and 5.9 million tonnes directly to North America.[3] The Middle East accounted for more than 40% of global polyethylene exports in 2025.[4]
This concentration creates exposure beyond direct crude imports. South Korea sourced 54% of its naphtha supply via Hormuz, while Japan sourced 40% of its naphtha from the Middle East.[5] Those feedstocks support production of polyethylene, polypropylene, glycols, solvents, and other intermediates used throughout global chemical and packaging markets.
Why local supply helps, but does not fully insulate the market
North America has significant oil, gas, refining, petrochemical, and chemical manufacturing capacity. That local base helps reduce some direct exposure to overseas disruption. It does not eliminate exposure.
There are several reasons.
Global pricing
Crude and feedstock markets are globally priced. Even when a material is produced domestically, replacement supply, spot-market pricing, and competitive exports can move with global conditions.
Continued imports
North America still imports some crude from the Middle East Gulf. In 2025, the United States imported about 490,000 barrels per day of crude oil from the Middle East Gulf, representing roughly 8% of total U.S. crude imports.[6] In 2023, Canada imported about 490,000 barrels per day of crude oil, with 10.7% coming from Saudi Arabia. Eastern Canadian refineries supplied by marine shipments rather than western pipelines can still rely on imported crude because of grade requirements, refinery configuration, transportation constraints, and price.[7]
Imported intermediates
Local manufacturing can still depend on imported intermediates. Gulf crude, condensate, and natural-gas liquids may be processed in Asia and return to global markets as polymers, intermediates, additives, solvents, and specialty inputs. Those materials may then be used in products blended in Alberta, Ontario, Texas, or elsewhere in North America.
Packaging exposure
Packaging is part of the chemical supply chain. Plastic containers, drums, totes, caps, liners, labels, and related packaging components are tied to resin markets, converter capacity, freight availability, and inventory decisions. A disruption may affect the package before it affects the chemistry.
Local blending and regional inventory are valuable. They can improve responsiveness, technical support, and continuity on specific product lines. But they do not remove exposure to global petrochemical pricing, imported intermediates, packaging constraints, or freight volatility.
Why the effects can last after shipping resumes
Supply chains do not reset the moment a shipping route reopens or an energy-market shock eases.
Delayed cargo still has to move. Plants affected by feedstock shortages, outages, or damage need time to restart. Buyers may over-order during uncertainty and then reduce orders later, distorting demand on both sides of the disruption. Packaging converters and logistics networks also need time to clear backlog and return to normal operating rhythm.
In severe cases involving physical damage, plant repair, restart sequencing, and backlog clearance, some industry estimates suggest recovery to pre-disruption operating conditions could take years rather than weeks.[8] That estimate should not be treated as a universal timeline for every material, but it is a useful reminder that petrochemical supply chains recover unevenly.
The visible event usually improves first. The secondary effects across raw materials, packaging, freight, pricing, and lead times can take much longer to work through.
What customers should expect from a supplier during disruption
Supply-chain disruption is not unusual in global chemistry. The important issue is how suppliers manage it.
In this type of environment, good supply-chain management from your supplier should include:
- Diversification of raw material sources.
- Securing critical raw materials before market pressure becomes obvious.
- Using formulation and technical expertise to reduce dependence on exposed inputs where performance can be maintained.
- Managing packaging and container supply with the same discipline as chemical raw materials.
- Communicating early when lead times, package formats, allocations, or pricing require review.
- Explaining the reason for changes clearly, rather than offering vague statements about “supply issues.”
None of these practices removes market pressure completely. They do, however, reduce avoidable disruption and help customers plan with better information.
Case study: 8+ years of uninterrupted supply at a SAGD operation
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The practical takeaway
An oil or gas shock is not only an energy-market event. In specialty chemicals, it can become a raw-material issue, a packaging issue, a logistics issue, and a finished-product reliability issue.
The customer-facing impact may not appear immediately. It may show up later as longer lead times, tighter availability, resin-driven packaging changes, higher freight costs, reformulation pressure, or pricing reviews.
The best protection is not a single tactic. It is disciplined supply-chain management supported by technical knowledge, diversified sourcing, inventory planning, packaging awareness, and direct communication.
That is the work your chemical supplier should be engage in to keep supply reliable when global petrochemical markets are under pressure.
Sources
1. U.S. Energy Information Administration. Hormuz oil and LNG flows, 2024. https://www.eia.gov/todayinenergy/detail.php?id=64904
2. Gulf Petrochemicals and Chemicals Association. The chemical industry: An enduring force in a changing world. https://gpcachem.org/2025/02/26/resilience-and-renewal-the-gcc-chemical-industry-through-the-year-2024/
3. Gulf Petrochemicals and Chemicals Association. Facts and Figures 2023. https://www.gpcachem.org/wp-content/uploads/2024/08/Facts-and-Figures-Summary-2023.pdf
4. Reuters. Middle East share of global polyethylene exports, March 2026. https://www.reuters.com/business/energy/iran-war-chokes-petrochemical-supply-sends-plastic-prices-soaring-2026-03-26/
5. Reuters. Asia naphtha dependence and South Korea / Japan exposure, March and April 2026. https://www.reuters.com/business/energy/asian-petchem-makers-face-naphtha-disruption-iran-conflict-widens-2026-03-04/ and https://www.reuters.com/world/asia-pacific/japan-naphtha-dependent-firms-flag-supply-issues-despite-government-assurances-2026-04-15/
6. U.S. Energy Information Administration. The Middle East Gulf was source for 8% of 2025 U.S. crude oil imports. https://www.eia.gov/todayinenergy/detail.php?id=67407
7. Canada Energy Regulator. Market Snapshot: Crude oil imports rose slightly in 2023, for the first time since 2019. https://www.cer-rec.gc.ca/en/data-analysis/energy-markets/market-snapshots/2024/market-snapshot-crude-oil-imports-rose-slightly-2023-first-time-since-2019.html
8. Paul Hodges. New Normal Consulting. How will the war impact global petchem markets? https://new-normal.com/wp-content/uploads/2026/04/iCB-Apr26.pdf
